The management consulting industry is not limited to just the three strategy firms. You have the big four, accenture, oliver wyman, bearing point and so many other large mgmt consulting houses each with their specialization. Some more tech, some more regulatory, some more accounting, etc. You cannot limit the entire industry to just bcg, bain and mck.
Yep, I completely agree - the consulting industry is massive and MBB are only a part of it. That said, they're an important part of the ecosystem and watching their moves is interesting and instructive.
Replying to almost every single comment and engaging with the audience is a smart way to stand out in the digital age! Thanks for your valuable insights and advice on the current state of the industry. As a sophomore whos' interested in getting into consulting specifically MBB, I worry that AI will do most of the work that consultants do and there would be a decline in demand for consulting services. First, How do you see Ai's role and it's effect in consulting in the long term and how often does your major matter when applying to these firms? I appreciate the quality content btw keep it up!
Re: major, I don't think it matters much at the undergrad level for getting an interview - where it might factor in is in the interview (e.g., if you're an english major and struggle doing math on the fly because you haven't had to do much math in school). Re: AI, that is a good question - and I certainly think it's on everyone's minds these days. However, my opinion is that in the next decade it's unlikely that AI will cannibalize consulting jobs and more likely that AI will help grow MBB business, as these firms build their ability to help other organizations and clients make use of AI. Why? Well these days production level AI is mostly good at basic tasks (e.g., scheduling an appt) rather than complex tasks w/ no right answer (e.g., how should company X deal with the entrance of company Y into their space). Consultants spend a bulk of their time on the latter type of questions. Hope that helps!
@@rocketblocks Thank you for the response! Do you think you'd have future discounts in regards to the Rocketblocks subscription especially for students in the foreseeable future?
This is great insight on the management consulting industry and the direction of new value being offered by these big firms. I will also take your advice on signing up for their newsletters to get more information on their advances in the digital age.
Love the video! Just wanted to add the in addition to McKinsey Analytics, McKinsey has also acquired QuantumBlack which is an advanced analytics firm similar to BCG's GAMMA.
Yes, that's true. It will be interesting to see how that evolves over time. My guess is that the firms move into these new spaces quickly it will get a bit messy (e.g., how is group X that was acquired different than internal group Y, etc.) but it will get sorted over time if they do it well.
@@rocketblocks It's a bit off topic from what's discussed in the video, but what surprised me was the recent announcement that McKinsey invested in Element AI, which is a new Canadian AI consultancy (techcrunch.com/2019/09/13/element-ai-raises-151m-on-a-600-700m-valuation-to-help-companies-build-and-run-ai-solutions/). QuantumBlack sort of does similar things as Element AI, so why would they do this?
As I said, it's day 1 in this new push so it will be messier and they'll likely "place a lot of bets". Investing in a loose competitor of sorts gives them some insight into what's happening + sets them up to potentially acquire them in the future if they want. It's an early way to start building the relationship. This happens in big tech a lot too.
I completely agree with you Kenton! But don't rule out Big 4 firms which have secured a significant head start in their strategy to execution oriented business model through the sheer breadth, depth and scale of their offering. Particularly in the execution portion which is naturally harder to imitate for classical independent strategy firms due to scaling.
Agreed. There are a lot of other firms who've been doing implementation for awhile and it will be really interesting to see how that plays out against the strategy firms moving into those spaces.
Interesting! I work for one of the big 4 in the implementation space and we’re trying to take on the strategy portion in addition to just implementing what the big 3 have recommended!
Hi All, any idea why Human Capital is so trending in management consulting? is that related to changes take place after Covid-19 and the work from home policy? I see many management consulting openings now required HR related experience. Any clue about that? and any recommendations about the related certifications?
Strategy consulting is different to management consulting. Management consulting tends to be more operational and that's what Deloitte, PWC etc do. Essentially, MBB are diluting their offering in terms of trying to remain relevant for future. 🙂
Hi Kenton, I personally feel that consulting is something I will be interested to work in. Traveling around the world is one of the perks I was drawn into this profession. Will we still get a chance for the same keeping the pandemic in mind? Also 10 years down the line, will consultancy have the relevance it had until now, since we are moving to AI and Machines?
I'm a business student from Europe who wants to go into consulting. What would be interesting for me is what should the ideal business student look like? Which hard skills? Data science and programming? I'm not trying to copy the ideal but to implement some things in my stuxdis.
Hi Kenton,I agree with you. I was wondering why a company needs strategic value from these big 4,while they themselves don't have operation to implement their strategic initiatives? Just so stupid when they did the consultancy and come up with results and will be up to their clients whether or not to implemented.I myself prefer to get a consultant who have similar operation and proven they can improve for example efficiencies rather than using consultants who has no control of the finding implementation. Many consultants has value prepositions on company strategic to continuous improvements and enhance their engagement in safety but they don't have they own platforms to implement it....it is quite naif isn't it? I reside in Jakarta Indonesia and helps a consultant (she has more than 200 plants w/w) to get connected to big state own companies for operational excellent and safety. I am available to help if any other consultants to get connected to big companies here in Indonesia.
Great video! I want ask you something. What will happen to the consultants when machines could take complex decisions about companies? Already, leaders are starting to use artificial intelligence to automate mundane tasks such as calendar maintenance and making phone calls. But AI can also help support more complex decisions in key areas such as human resources, budgeting, marketing, capital allocation and even corporate strategy - long the bastion of bespoke consulting firms such as McKinsey, Bain, and BCG, and the major marketing agencies.
It's a good question - the first order thought might be that as machines get better, they'll replace humans. But the second order is rather that as machines get better, humans will up-level the work they do -> meaning machines will do the repetitive stuff and humans will move on to more complex tasks. A good example of this happening is Tesla's factories -> they use more robots in assembly but that use of robots has increased their need for humans who can guide them, program them, aid them, etc. Similarly, Google used to employ thousands of people to manually review ads. As they got better at having algos do it, they moved those people into more high value roles like account management, etc.
Yes, definitely. I think I should have clarified that in "New areas of excellence" I was only highlighting two of the new things they're doing, but they're all doing much more than that. I'd argue that they've always been focused on strategic vision but they're both doing more People + Org work than in the past too, which covers things like culture.
The management consulting industry is not limited to just the three strategy firms. You have the big four, accenture, oliver wyman, bearing point and so many other large mgmt consulting houses each with their specialization. Some more tech, some more regulatory, some more accounting, etc. You cannot limit the entire industry to just bcg, bain and mck.
Yep, I completely agree - the consulting industry is massive and MBB are only a part of it. That said, they're an important part of the ecosystem and watching their moves is interesting and instructive.
Replying to almost every single comment and engaging with the audience is a smart way to stand out in the digital age! Thanks for your valuable insights and advice on the current state of the industry. As a sophomore whos' interested in getting into consulting specifically MBB, I worry that AI will do most of the work that consultants do and there would be a decline in demand for consulting services. First, How do you see Ai's role and it's effect in consulting in the long term and how often does your major matter when applying to these firms? I appreciate the quality content btw keep it up!
Re: major, I don't think it matters much at the undergrad level for getting an interview - where it might factor in is in the interview (e.g., if you're an english major and struggle doing math on the fly because you haven't had to do much math in school).
Re: AI, that is a good question - and I certainly think it's on everyone's minds these days. However, my opinion is that in the next decade it's unlikely that AI will cannibalize consulting jobs and more likely that AI will help grow MBB business, as these firms build their ability to help other organizations and clients make use of AI. Why? Well these days production level AI is mostly good at basic tasks (e.g., scheduling an appt) rather than complex tasks w/ no right answer (e.g., how should company X deal with the entrance of company Y into their space). Consultants spend a bulk of their time on the latter type of questions. Hope that helps!
@@rocketblocks Thank you for the response! Do you think you'd have future discounts in regards to the Rocketblocks subscription especially for students in the foreseeable future?
This is great insight on the management consulting industry and the direction of new value being offered by these big firms. I will also take your advice on signing up for their newsletters to get more information on their advances in the digital age.
Love the video! Just wanted to add the in addition to McKinsey Analytics, McKinsey has also acquired QuantumBlack which is an advanced analytics firm similar to BCG's GAMMA.
Yes, that's true. It will be interesting to see how that evolves over time. My guess is that the firms move into these new spaces quickly it will get a bit messy (e.g., how is group X that was acquired different than internal group Y, etc.) but it will get sorted over time if they do it well.
@@rocketblocks It's a bit off topic from what's discussed in the video, but what surprised me was the recent announcement that McKinsey invested in Element AI, which is a new Canadian AI consultancy (techcrunch.com/2019/09/13/element-ai-raises-151m-on-a-600-700m-valuation-to-help-companies-build-and-run-ai-solutions/). QuantumBlack sort of does similar things as Element AI, so why would they do this?
As I said, it's day 1 in this new push so it will be messier and they'll likely "place a lot of bets". Investing in a loose competitor of sorts gives them some insight into what's happening + sets them up to potentially acquire them in the future if they want. It's an early way to start building the relationship. This happens in big tech a lot too.
Amazing video! Really love the insight, it has definitely helped me understand the industry and its trajectory more.
I completely agree with you Kenton! But don't rule out Big 4 firms which have secured a significant head start in their strategy to execution oriented business model through the sheer breadth, depth and scale of their offering. Particularly in the execution portion which is naturally harder to imitate for classical independent strategy firms due to scaling.
Agreed. There are a lot of other firms who've been doing implementation for awhile and it will be really interesting to see how that plays out against the strategy firms moving into those spaces.
Interesting! I work for one of the big 4 in the implementation space and we’re trying to take on the strategy portion in addition to just implementing what the big 3 have recommended!
Really inspiring insights! I'm currently considering my career path thing and really lucky to see this video! Thanks for sharing!
That's great, best of luck with everything!
Love the insights!
What do you think about Mckinsey MI? Do you think the exit ops are drastically differently than that of a generalist?
Hi All, any idea why Human Capital is so trending in management consulting? is that related to changes take place after Covid-19 and the work from home policy? I see many management consulting openings now required HR related experience. Any clue about that? and any recommendations about the related certifications?
Strategy consulting is different to management consulting. Management consulting tends to be more operational and that's what Deloitte, PWC etc do. Essentially, MBB are diluting their offering in terms of trying to remain relevant for future. 🙂
Thank you so much for the great insight! Really helped me to put things into perspective.
Hi Kenton, I personally feel that consulting is something I will be interested to work in. Traveling around the world is one of the perks I was drawn into this profession. Will we still get a chance for the same keeping the pandemic in mind? Also 10 years down the line, will consultancy have the relevance it had until now, since we are moving to AI and Machines?
I'm a business student from Europe who wants to go into consulting.
What would be interesting for me is what should the ideal business student look like? Which hard skills? Data science and programming?
I'm not trying to copy the ideal but to implement some things in my stuxdis.
Hi Kenton,I agree with you. I was wondering why a company needs strategic value from these big 4,while they themselves don't have operation to implement their strategic initiatives?
Just so stupid when they did the consultancy and come up with results and will be up to their clients whether or not to implemented.I myself prefer to get a consultant who have similar operation and proven they can improve for example efficiencies rather than using consultants who has no control of the finding implementation.
Many consultants has value prepositions on company strategic to continuous improvements and enhance their engagement in safety but they don't have they own platforms to implement it....it is quite naif isn't it?
I reside in Jakarta Indonesia and helps a consultant (she has more than 200 plants w/w) to get connected to big state own companies for operational excellent and safety. I am available to help if any other consultants to get connected to big companies here in Indonesia.
I have experience in IT Implementation consulting. How can I transition into IT Strategy?
Stay there...
Really great video! Thanks!
Great video! Definitely going to use your website to get ready for recruiting season next year
Thanks Diego, glad you enjoyed it and hope you find RocketBlocks helpful too!
Great video! I want ask you something. What will happen to the consultants when machines could take complex decisions about companies? Already, leaders are starting to use artificial intelligence to automate mundane tasks such as calendar maintenance and making phone calls. But AI can also help support more complex decisions in key areas such as human resources, budgeting, marketing, capital allocation and even corporate strategy - long the bastion of bespoke consulting firms such as McKinsey, Bain, and BCG, and the major marketing agencies.
It's a good question - the first order thought might be that as machines get better, they'll replace humans. But the second order is rather that as machines get better, humans will up-level the work they do -> meaning machines will do the repetitive stuff and humans will move on to more complex tasks. A good example of this happening is Tesla's factories -> they use more robots in assembly but that use of robots has increased their need for humans who can guide them, program them, aid them, etc. Similarly, Google used to employ thousands of people to manually review ads. As they got better at having algos do it, they moved those people into more high value roles like account management, etc.
Don't you think they are also developing expertises in "soft" subjects such as culture, purpose, strategic vision, engagement levers... ?
Yes, definitely. I think I should have clarified that in "New areas of excellence" I was only highlighting two of the new things they're doing, but they're all doing much more than that. I'd argue that they've always been focused on strategic vision but they're both doing more People + Org work than in the past too, which covers things like culture.
I suggest you to improve your audio quality...your Content is already great...but what prevent the advanced of any kind is the limiting factor
Why are you always holding a pen in the video but you are apparently not writing at all in the video?
Because holding it feels natural - you never know when you need to write something down :)